Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets remain volatile, but, for all the same reasons, the overall direction continues to be down. Vessel owners are still asking when the market will hit bottom. We are currently moving through the seasonal holiday doldrums, and it will not be long before the Lunar New Year celebrations arrive on January 22. I expect to see some charterers covering position before they depart for the holidays.
Panamax daily hire rates for December are down to $12,800/day with Q1 2023 trading at $11,400/day.
The low water situation on the Mississippi River improved last week but is now a continuing concern as water levels are expected to drop going into the next two weeks.
It appears that a U.S. railroad strike has been averted. The U.S. House of Representatives passed a bill to force both sides to accept an agreement. On Thursday, 1 December, the Senate is scheduled to vote on the legislation. The ILWU union container report contract negotiations are continuing without resolution and talks are expected to go into early 2023.
